The Global Yeast Market is expected to grow at a CAGR of 5.9% during the forecasting period (2022-2029).
Yeasts are unicellular organisms which are evolved from multicellular ancestors. Yeast sizes vary greatly depending on species and environment typically measuring 3-4mm in diameter. Yeasts are chemo organotropism, as they use organic compounds as a source of energy, they do not require sunlight to grow. Yeast species either require oxygen or aerobic cellular respiration or are often isolated from sugar-rich materials. They include naturally occurring yeasts on the skins of fruits and berries. Yeast products can beneficially modify microbial activities, fermentation and digestive functions in rumen aiding growth towards the market. The increasing consumption of processed food and growing demand for nutritional yeast is likely to be the major driving factor for the market’s growth. Moreover, the rising demand for functional bakery products, positive trend in alcoholic beverage consumption and improved production of animal feed is adding towards the market’s growth.
The increasing applications by end-user sectors are driving the global yeast market
The food and beverage industry uses yeast in the production of a large number of its products such as alcoholic beverages, non-alcoholic beverages, animal feeds, yeast extract, and probiotic drinks. Yeast is majorly used by the bakery industry to enhance the quality of bakery goods. The increasing demand from these end-user sectors contributes significantly to the yeast market’s growth, and this factor is projected to drive the market further within the forecast period. Moreover, the yeast market is driven by growing consumer spending on healthy organic food products. There are many health benefits associated with the regular taking of organic food products like yeast. These include skin rejuvenation, eyesight improvement, boosting of the immune system, protection, and cholesterol reduction. Yeast can also act as an anti-oxidant that helps in protection against oxidative damage. This will foster market growth.
Furthermore, increasing acceptance for bio-ethanol as an alternative fuel as well in the biotechnology and pharmaceutical industry is anticipated to further compliment the market growth. The accelerating demand for ready-to-eat food items as well as convenience food is presumed to fuel the rapidly growing speciality yeast market. The demand for convenience in food products has led to an increased demand for ready-to-eat food products, such as ready to consume soups and noodles, which have high amounts of yeast content in them.
However, stringent regulations imposed by regulatory bodies and government in various countries is hindering the market for products made from yeast, thus restraining the yeast market. Also, the unavailability of suitable raw materials required in the production of a varied range of yeast types hampers the industry growth. Further, shortage of raw materials is forecast to create supply-demand imbalances which restrain the growth of the market.
Baker’s yeast segment is expected to be the largest segment with a share of XX% during the forecast period.
The global yeast market has been segmented by type into baker’s yeast, brewer’s yeast, wine yeast, bioethanol yeast and feed yeast among others. The baker’s yeast segment held the largest share as of 2020. This is attributed to the cost-effectiveness and wide application areas of baker’s yeast in industries, such as food and feed. The growth of the baker’s yeast market is directly linked to the increase in the consumption of bakery items. The rise in consumption of bakery products, particularly bread, in developed regions is projected to drive the growth of the baker’s yeast market. Moreover, according to the All India Bread Manufacturer’s Association (AIBMA), India’s estimated per capita consumption of bread is nearly 1.5 kg to 1.75 kg. Thus, the increase in consumption of bakery products, particularly bread, contributes to the growth of the baker’s yeast segment in the market during the forecast period.
Europe is expected to dominate the global yeast market
By geography, Europe is expected to dominate the global yeast market in the year 2020, growing with a CAGR of xx% during the forecast period. In 2020, the Europe region dominated Yeast Market in terms of revenue with a market share of 3.6% owing towards the increase in the disposable income and inception of weekend culture in most parts of Europe and increasing demand for investment in R&D. The amount of revenue generated through the sales of yoghurt and sour milk products in Germany has increased by more than 2% in the past four years which presents exciting opportunities for the growth of yeast market in this region. The government has taken initiatives to promote technological advancements in this region and also, European countries have a culture of drinking wine with dinner are a key factor in the growth of the yeast market. Moreover, the market in the European Union is mainly concentrated on bread production applications. The increase in the consumption of cakes, bread, pastries, as well as alcoholic beverages has led to an increase in demand for yeast in European countries.
The global yeast market is highly fragmented. Major industry participants in the global market include Kerry Group., Lesaffre Group, AB Vista, Lallemand Inc., Bio Springer S.A., Angel Yeast Co. Ltd., and Cargill Incorporated among others. Product launches, mergers & acquisitions, joint ventures, and R&D activities are key strategies adopted by the players in the yeast industry. For instance, in January 2020, Lesaffre Group set up a new baking centre for its subsidiary, Lesaffre Ivoire, in Abidjan, West Africa, for providing innovative bread-making solutions. This new establishment would help the company to serve its customer base in West Africa, increase its production capacity, and expand its geographic reach. In January 2019, Kerry Group launched its first non-GMO yeast named “Acryleast” for effective reduction of acrylamide levels up to 90% without affecting the taste and texture of food & beverages. This new product launch helped the company to strengthen its clean label product range. In October 2019, Lallemand Inc. set up a new speciality yeast manufacturing facility in Passau, Germany. This new establishment helped the company to serve its customer base in Europe, increase its production capacity, and expand its geographic reach. In December 2019, AngelYeast Co., Ltd. launched a new natural flavour-enhancing solution for plant-based foods and beverages in Europe. This product launch will help the company to strengthen its portfolio and increase its customer base in Europe.
COVID-19 Impact: Increase in demand for bakery products
The COVID-19 crisis has hugely affected the demand for bakery products. The spike in the demand for yeast during the early days of the pandemic has been seen as due to lockdowns across the globe, people with more time at home. With increased time at home and the shutdown of the food outlets outside, a rediscovery of baking and making bread took off across the globe, which is driving increased demand for yeast as compared with pre-COVID-19 levels. Thus, consumers are baking it at home instead of buying bakery products from the market.
On the other hand, due to the outbreak of COVID-19, the yeast market has been facing some issues with streamlining all of the supply chain workstreams from production to the delivery of the yeast, which is expected to restrict the growth of the yeast market during this pandemic period. Additionally, consumers will be more focused on building higher immunity levels during and post-crisis situations which will shape the market of ingredient producers.
Major yeast companies are focusing on healthier product development to promote people’s health and wellbeing by reducing salt content, cutting saturated fats and reducing sugar. People suffering from lifestyle disorders such as diabetes and blood pressure are more likely to suffer from COVID-19. For instance, Associated British Foods plc products under DON business continues to reduce the salt content of their products and started adding a ‘smiley’ label on low-salt products that it will be designed to appeal to children, while ABF Ingredients business Ohly has launched natural, yeast-based ingredients which enable consumers to reduce the content of salt in their recipes by up to 30%.s
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